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Question 1 [20 marks] You are an official at the Department of Finance in your country and your mission is to increase government tax revenue. You identify a product (X) with the following demand curve Price R4 R3 3 Product X Quantity Figure 1- Price Elasticity of Demand a) Work out what the responsiveness in the quantity demanded to a change in Price from R3 to R4 would be (10 marks] b) Does product X have a price elastic or inelastic demand curve, explain using your answer in a) (4 marks) c) Will the increase in price from R3 to R4 stemming from the imposition of a tax increase tax revenues? Explain with the following equation. Total Revenues = Price x Quantity (6 marks)